This quarter, businesses across Australia are focusing in on the local economy to determine their business growth and asset acquisition strategy. With $52 billion predicted to be spent on plant and equipment (according to ABS figures), three-quarters of which is expected to be bought outright, are businesses hindering themselves?
2017 and the local economy – so far, so good
It’s all About the Local Economy
Many factors are taken into consideration when a business decide to acquire an asset or not. What equipment are competitors using? Does it fit within the business strategy? Is now the right time to grow their asset base? Alleasing’s research delves into the why’s and why nots to find out what Australian businesses are thinking and how the local economy fits into their decision making.
Buying vs Leasing – Time to Unlock Cash Flow?
In the financial year ending June 3O this year, the Australian Bureau of Statistics (ABS) has forecast businesses will spend around $52 billion buying plant and equipment. In this round of the Equipment Demand Index, businesses reported that 75.O per cent of their asset base will be acquired outright. But could this be hampering business growth and the local economy opposed to helping it?
Businesses Adding Assets
It’s been a positive 2017 for many businesses so far with 15 out of 20 either growing, or looking to grow. This quarter’s Equipment Demand Index looks at analyses which states and industries are growing and what that means for the overall economy.
Cost of Capital. The Big Brake on Business
Mining investment has improved and commodity prices have risen, defying economists predictions, but what about Australia’s other industries? Have low-interest rates helped businesses access capital or left them putting the brake on their business?
NB. The research and publication of the Equipment Demand Index was conducted under Maia Financial’s previous name, Alleasing.